Why Corporate Camo Is Necessary For Gen-Y

22 05 2008

It’s no wonder that many boomers and gen-xers think we are the worst generation.   We’ve had our helicopter parents swoop in and save us when we’ve gotten into rough situations, we’ve been told our whole lives that we should dream big and that we have the power to change the world (and we believe it!), and most of us have never seen our parents struggle so we “don’t know what it takes.”

Our elders look at those of our generation who decided to take “a year off” to travel, are still jobless because they haven’t found the right fit, on the 5-6 year plan, or moved home to live with their parents after graduation and they tell us that we have “failed to launch.”

I am not defending my generation in this regard.  I’m almost 23 (next week!), I have a wife, two dogs, and I’m buying a house.  At times I’m disgusted by my own maturity, but at other times I’m disgusted by the lack of maturity that many of my peers show.  I have made my decisions, and I am happy, others have made their decisions and I hope they are happy, but in order to change the world like we have been told and taught that we will do; some of us need to camouflage ourselves.

There are some great companies who realize that they need to adapt and appeal to us in order to thrive, you know who they are because you most likely researched them as a place you want to work.  But when the reality of being a college grad steps in and you don’t get your dream job, you’ll learn that at most companies it will be a struggle to make the company more gen-y compatible.  It will be a struggle that will last until we are in positions of power and can effectively fight for what we believe.  Until then we must fall into line, we must play the game, we must appeal to Gen-X and the Boomers.  We need to act more mature than we are and we will climb the ladder.  Then, when the time is right, we can grab the reigns and make the changes that are needed.

What this entails:

  • Do not allow your parents to involve themselves in your workplace.
  • Dress up.  If your dress code is business casual, wear dressy casual.
  • Stay clean cut.  Shave and get a haircut, long hair is not boomer compatible.
  • Imitate.  Older people love younger people that remind them of themselves.
  • Go out of your way to impress them.

I know this goes against much that we believe to be true and what many people try tell us about ourselves, but unless you work for one of the few companies that is truly gen-y compatible this cammo will be necessary to make the changes we want.  Our fault as a generation is thinking that we can have our dreams now, but we must realize that in order to achieve our dreams and the changes we wish to see we need to plot out a realistic path and work towards acheiving them.

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Life Tips From My Finance Professor: Part 1 – Purchases

18 03 2008

I took an investments class the during the Fall semester of my Senior year in college, and when I say “took” I mean that I dutifully attended every class, sat in the front row, and tried with all my heart to understand what the hell he was talking about.  It wasn’t that I didn’t understand the material, I just didn’t understand how our professor could brush over things so fast.  Most of the rest of the students never attended because the professor was one of the few that “recycled” his tests every year and didn’t change anything except for the numbers (ie: you did not need to attend class, you just needed to know someone who took him last semester).  

Dr. Chucky (as he preferred to be called) is one of the most peculiar people I have ever met.  And this is what you need to know about him… He probably smoked 2 packs a day, he sweated like a pig, and he spoke 6 languages.  He was a professor because it allowed him to play with his portfolio all day and use his summers to travel.  He is an incredibly smart person, but the type of smart person who didn’t relate very well to less smart people.  He has been on over 10 game shows and won a great deal of money from them.

I have previously written about things that should be mandatory for every college senior to learn (My Mandatory Class Proposal) and this series is about what Dr. Chucky rushed through on the last day of class when he handed out a sheet with many jumbled and incomplete sentences.  The thoughts were broken into 5 different categories.  We then talked about a 6th.  I will try and decode his thoughts in this series. 

Purchases:

1.  “1 hour search/study for each $1000 purchase”       

 What I believe he is saying here is don’t sweat the small stuff.  I write a great deal about frugality, and how I’m a bargain hunter, but usually what happens to me is that I over-research items and I don’t value my time enough.  If you spend 8 hours trying to figure out how to save 10% on a $1000 purchase is it really worth the time?   On the other hand, if you spend 20 hours researching a car and how to buy one it is probably a better use of time.  Or if you are looking to buy a house, spend as much time as you can, I don’t know if it’s possible to over-research a $200+ thousand purchase.

2.  “Think of all purchases in annual terms”       

 We live in a society that looks at things as “how much per month” without looking at the entire picture.  Sometimes it’s easier to finance things (not recommended) but we need to look at a bigger picture than just monthly, so look at how much you’ll be paying every year.  That should open your eyes, especially if you start to think about how much of that is interest and how much is principal.  Then look at how much you’ll be paying over the life of the loan…is it worth it?

 3. “Autos: go to fleet manager or internet managers”       

 Car salesmen are the pawns of the dealerships, the more they get you to pay, the more money they get.  Fleet/Internet Managers run the show.  They don’t get paid based on how much you pay, they get paid based on inventory turnover.  They don’t like to deal with haggling, they just want to get you in a car and out the door.  Mary and I did this when we bought our Volvo, it was a great experience, we got it for a great price, and we didn’t even need to haggle.  The internet manager agreed on our price, though the sales manager was royally pissed off (we heard him yelling at the internet manager).

 4. “Insurance, higher deductibles will lower premium rates”       

This pretty much speaks for itself.  Some people may say “but then I have to pay more if something happens,” true, but if you took the difference between the more expensive monthly payment, and the less expensive monthly payment you could be adding that difference to your emergency fund and earning interest on it in the meantime.  Pretty soon you’ll have saved enough to pay a higher deductible if something were to happen, and the rest is just more money saved.

 5. “Live below your means, save on : yard, car wash, cable TV, tipping”       

In other words, live below your means and don’t mindlessly spend.  There are plenty of luxuries that most people consider staples, Cable TV being at the forefront.  If you look for places to make cuts, you will find them.  You can wash your own car, you can take care of your own yard, and you don’t have to be known as a “big tipper.”

 6. “House purchase: Multiple Listing Service add-ons”      

  While I normally probably wouldn’t be able to decode this, I did jot down what he was talking about.  Multiple Listing Service (MLS) is the service that real estate agents use to search for houses.  What he meant by add-ons is to go to your real estate agents office early in the morning and map out which of the houses added to the list that morning you will go look at.  He was a big advocate of buy the cheapest/worst house on the best block, and he recommended that this was the only way to get it before someone trying to turn a profit by flipping it would.  Mary and I discovered that this really is the best way to do it.  When we were looking at houses we went by one that we really liked, on the day it was listed.  It was listed for what our agent believed was below market value, and the next day a contract was in on it for full asking price.  Two months later, it had been flipped and was back on the market for $100k more.

7.  “$1,000/month rent, buys a ~ $360,000 home after tax @ 5%”      

 This is one that I really can’t fully decode.  I believe he is essentially saying don’t throw away money on rent when you could be buying a house, but his math seems to be off.  By my math $1000/month buys a $225,000 house at 5% interest, if you put 20% down.  If you paid $1500 a month on mortgage you could do a $360,000 home after 20% down.  As someone in the process of buying/building a house, I’m still torn on the whole rent vs. buy thing.  There are tons of pros and cons to each, but I’m happy with our decision.  

As you can see, in Dr. Chucky’s list of incomplete sentences and thoughts on personal finances there is some great wealth of advice just waiting to be decoded and understood.  Stay tuned for more!





My Mandatory Class Proposal

11 03 2008

In college I thought I had learned everything.  I learned finance in and out, I learned economics, marketing, advertising, managing, forecasting, social drinking, networking, and every other aspect of business that I could think of.  I was a badass. 

Nope.  As soon as I started work, I ate my piece of humble pie. 

Why is it that I spent four years in college, graduating with honors and a dual degree, to enter the workforce and immediately be slammed by something that I had never been taught? 

Literally, the first thing I encountered when starting my new job was benefits, and I have never been taught benefits.  What kind of medical coverage do I need?  Should I get the basic plan, or the premium plan? HMO? PPO? Extra life insurance?  Flexible Spending Account?  Use it or lose it? How much will all this cost me? It was a very overwhelming experience.  

Who do you turn to in a situation like this?  It seemed like the benefits lady who talked to me on my first day was in the same boat I was in.  She had no idea what she was doing!  Other people asked questions and she stated the coverage that she elected.  Great.  How is a 40 year old, single mother’s elected coverage supposed to relate to a guy directly out of college?  Thank God I had a week to submit my elected coverage, because that gave me time to research and talk to my Dad.  Now am I confident in my selections?…Absolutely not. 

Having had this experience, I propose a mandatory class for all college seniors, regardless of their major.  This class would be taught jointly between a few different departments and would touch on topics that everyone will face after college:

  1. Résumés and cover letters: writing and critiquing
  2. Interviews: How to sound like a better you
  3. Benefits: The pros and cons of certain coverage
  4. Insurance: Life, Car, Home
  5. Personal Finance: How to Budget, and Don’t let your ego use your wallet
  6. Retirement Planning: Yes, you’re 21, but you won’t be forever

I propose that this class be mandatory for all college seniors because regardless of major, everyone will face these issues after college, and not everyone will have someone close to them bail them out (Thanks Dad!). 

I realize that all of these topics vary by person, but having someone lay out some basic guidelines that you will be tested on is something that I think everyone can agree on.  For instance: If you start out saving/investing 10% in a 401k/IRA/Roth IRA when you are in your early 20’s, you will be set for 80% income replacement when you retire (USAA Magazine), and your housing expense should be a maximum of 30% of your take home pay (many financial professionals).  Basic guidelines like these can educate people and make them more aware of their situations. 

I had great professors in college, but unfortunately only two of them did any sort of rundown on personal finance, and both of them were hurried on the last day of class.  In a few of my classes we worked on our résumés, but everyone thinks their way is the best, and I ended up with a few different versions to appease a few different people.  Interview sessions were offered by Career Development Services.  The key word “offered.”  Few people took them up on it. And I know quite a few people who graduated college with a great deal of debt.  Why?  Because they could pay off all their cards when they got jobs. 

I think a mandatory class along these lines would have a great impact on the future leaders of our country.  And maybe, just maybe, it may help make frugality a virtue again.